Case Study 1: Sales Price

Richard sold stock for $2,300. He paid his broker a commission of $35 on the sale and received net proceeds of $2,265.

Richard's broker reported:

Sales price on Form 1099-B shows $2,300
The box next to gross proceeds is checked

Do you have to make any adjustments to Richard's basis in the stock?

Because the sales price is shown, you need to add the broker's commissions and fees ($35) to Richard's basis in the stock to compute the capital gain or loss.

However, if Richard's broker had reported the net proceeds:

Form 1099-B would show $2,265 ($2,300 - $35)
The box next to net proceeds would be checked
You would not have to adjust his basis

Income — Capital Gain or Loss Workout

Proceeds from the Sale

Case Study 1: Sales Price